When the Selling Division Cannot Sell an Item on the External

question 8

True/False

When the selling division cannot sell an item on the external market, using either a market-based or cost-based transfer for the item can lead to dysfunctional decisions.

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Definitions:

Tax

Compulsory contributions to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.

Per Unit Burden

The cost or tax imposed on a single unit of a good or service, affecting its production or consumption.

Buyers

People or organizations that buy products or services for personal consumption, for reselling, or to use in manufacturing.

Tax

is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization to fund government spending and various public expenditures.